Issue and Redemption of Debentures · Class 12 · CBSE · Commerce Accountancy
According to the Companies Act, 2013, what is the percentage of Debenture Redemption Reserve (DRR) required to be created out of profits before the r…
Practice question from Issue and Redemption of Debentures (Class 12 · CBSE · Commerce Accountancy), with the correct answer and a step-by-step solution.
hard · MCQ · Q-B5B7F9
According to the Companies Act, 2013, what is the percentage of Debenture Redemption Reserve (DRR) required to be created out of profits before the redemption of debentures begins for non-banking financial companies (NBFCs) registered with RBI and HFCs?
- A.10%
- B.25%
- C.50%
- D.Nil (0%)Correct answer
Solution
As per Rule 18(7) of the Companies (Share Capital and Debentures) Rules, 2014 (as amended), DRR is not required for All India Financial Institutions (AIFIs) regulated by RBI, Banking companies, NBFCs registered with RBI, and Housing Finance Companies (HFCs) for both public and privately placed debentures.
More from Issue and Redemption of Debentures
- What is the maximum limit of discount on the issue of debentures as per the Companies Act, 2013?
- X Ltd. issued 1,000, 9% debentures of Rs. 100 each at a discount of 10%, redeemable at par after 5 years. What is the total amount of Loss…
- When debentures are issued as collateral security for a loan taken from a bank, which of the following alternative entries can be passed in…
- Which account is debited when the company decides to write off 'Discount on Issue of Debentures' or 'Loss on Issue of Debentures'?
Practise more Accountancy
Sign up free for adaptive practice on this chapter, with instant feedback and hints on every question.
Start practising freeFree to start · No credit card needed